Operations management chapter 2 test bank PDF

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OPERATIONS MANAGEMENT - CHAPTER 2 TEST BANK Which of the following is least likely to affect the

A. price Relative to the other

cost an organization incurs in producing its

choices, price is least likely to

products or services?

affect cost.

A. price B. productivity C. location D. quality E. inventory management Where a firm locates would typically not affect

D. strategy. Typically, strategy

that firm's:

dictates where firms will locate,

A. costs.

rather than location dictating

B. convenience for customers.

strategy.

C. delivery times. D. strategy. E. transportation costs. Which of the following is not among the chief

B. emphasizing labor

reasons organizations fail?

productivity in labor-intensive

A. overemphasis on short-term financial

environments In labor-intensive

performance

environments, emphasizing

B. emphasizing labor productivity in labor-

labor productivity is a good

intensive environments

idea.

C. poor internal communications D. not investing in capital and human resources E. overemphasis on product (or service) design

The key to successfully competing is

C. finding the best way to To

understanding what customers want and then

successfully compete, two basic

__________ satisfy those wants.

issues must be addressed:

A. training production workers to

What do the customers want?

B. finding suppliers who can

What is the best way to satisfy

C. finding the best way to

those wants?

D. designing products and services that E. hiring enough workers to An organization's mission statement serves as the

E. organizational goals.

basis for:

Organizations' missions serve

A. environmental scanning. B. core competencies.

as the broad underpinning for their goals.

C. operating procedures. D. distinctiveness. E. organizational goals. Which of the following would be least important in

A. cost minimization Many

the pursuit of a time-based strategy?

means for minimizing cost

A. cost minimization

would have the effect of making

B. quick changeover times

a time-based strategy less

C. operational agility

feasible.

D. reduced complaint resolution times E. flexible technology Competitiveness doesn't include: A. productivity. B. effectiveness. C. profitability. D. operations strategy. E. operations management.

C. profitability. A company can be competitive relative to similar companies and still be unprofitable if the competitive environment is inherently unprofitable.

Product design and choice of location are

A. strategic These decisions are

examples of _______ decisions.

made high in the hierarchy.

A. strategic B. tactical C. operational

D. customer-focused E. design Scheduling personnel is an example of an

B. operational decision.

operations management:

Staffing-level decisions are

A. mission implementation.

made low in the hierarchy.

B. operational decision. C. organizational strategy. D. functional strategy. E. tactical decision. Productivity is expressed as:

D. output divided by input.

.A. output plus input.

Productivity is the ratio of

B. output minus input.

outputs to inputs.

C. output times input. D. output divided by input. E. input divided by output. In the 1970s and early 1980s in the United States,

C. marketing and financial

organizations concentrated on:

strategies. This led to U.S. firms

A. operations strategies. B. improving quality.

being not very competitive with regard to their operations.

C. marketing and financial strategies. D. revising mission statements. E. environmental issues. Which of the following is not a factor that affects

E. product price These don't

productivity?

lead to fundamental changes in

A. computer viruses

operations.

B. design of the workspace C. use of the Internet D. standardizing processes E. product price Which of these factors would be least likely to

E. advertising Advertising could

affect productivity?

increase the value of the

A. methods and technology

outputs, but it is less likely to

B. workers

affect productivity than these

C. management

D. product mix

other factors.

E. advertising Which of the following is not a key step toward

E. converting bond debt to

improving productivity?

stock ownership A firm's

A. developing productivity measures for all

productivity is independent of

operations

its capital structure.

B. improving the bottleneck operations C. establishing reasonable goals for improvement D. considering incentives to reward workers E. converting bond debt to stock ownership For an organization to grow its market share, it

C. exceed minimum standards

must:

of acceptability for its products

A. advertise using multimedia.

or services. Only by exceeding

B. reduce prices.

standards can an organization

C. exceed minimum standards of acceptability for

grow its market share.

its products or services. D. establish an Internet Web site. E. broaden its mission statement. The ratio of good output to quantity of raw

B. process yield. This is

material input is called

sometimes a useful productivity

A. nondefective productivity.

measure in service industries.

B. process yield. C. worker quality measurement. D. total quality productivity. E. quantity/quality ratio. The fundamental purpose for the existence of any

D. mission statement. A mission

organization is described by its:

statement is the organization's

A. policies.

attempt to justify its existence.

B. procedures. C. corporate charter. D. mission statement. E. bylaws. A productivity increase in one operation that does

A. worthwhile. Only system-

not improve overall productivity of the business is

wide productivity improvement

not

makes the organization more

A. worthwhile.

productive.

B. trivial. C. competence-destroying. D. an order winner. E. an order qualifier. Value added can be calculated by:

E. outputs minus inputs. Value

A. average productivity gains over time.

added represents the change in

B. inputs divided by the outputs.

value of the original inputs.

C. outputs divided by the inputs. D. input plus output divided by two. E. outputs minus inputs. Which of the following is true? A. Corporate strategy is shaped by functional strategies. B. Corporate mission is shaped by corporate

C. Functional strategies are shaped by corporate strategy. Corporate strategy shapes strategies at lower levels.

strategy. C. Functional strategies are shaped by corporate strategy. D. External conditions are shaped by corporate mission. E. Corporate mission is shaped by functional strategies. Core competencies in organizations generally do

E. sales price. What a firm

not relate to:

charges for its outputs is not a

A. cost.

core competency. What it can

B. quality.

charge, however, is potentially

C. time.

related to a core competency.

D. flexibility. E. sales price. With regard to operations strategy, organization

A. operations' strengths and

strategy should, ideally, take into account:

weaknesses. Formulation of

A. Remove communications barriers within

organization strategy should

organizations.

take into account the realities

B. Minimize attention to the operations function.

of operations' strengths and

C. Put less emphasis on short-term financial

weaknesses, capitalizing on

results.

strengths and dealing with

D. Recognize labor as a valuable asset and act to

weaknesses.

develop it. E. Improve quality. Which of the following is not typically considered

B. Minimize attention to the

a cure for poor competitiveness?

operations function. Operations

A. Remove communications barriers within

is a prime area for improving

organizations.

competitiveness.

B. Minimize attention to the operations function. C. Put less emphasis on short-term financial results. D. Recognize labor as a valuable asset and act to develop it. E. Improve quality. Time-based approaches of business organizations

E. internal audits. Internal

focus on reducing the time to accomplish certain

audits have little to do with core

necessary activities. Time reductions seldom

value-adding efforts.

apply to: A. product/service design time. B. processing time. C. delivery time. D. response time for complaints. E. internal audits. The external elements of SWOT analysis are:

C. opportunities and threats.

A. strengths and weaknesses.

Opportunities and threats relate

B. strengths and threats.

to the organization and its

C. opportunities and threats.

external environment.

D. weaknesses and opportunities. E. strengths and opportunities. In an assembly operation at a furniture factory,

C. 15 chairs/worker/day Divide

six employees assembled an average of 450

the output of 450 chairs by the

standard dining chairs per five-day week. What is

inputs of 30 worker-days.

the labor productivity of this operation? A. 90 chairs/worker/day B. 20 chairs/worker/day C. 15 chairs/worker/day D. 75 chairs/worker/day E. 60 chairs/worker/day Which of the following is not a reason for poor

D. taking advantage of

performance of our organization in the

strengths/opportunities, and

marketplace?

recognizing competitive threats

A. placing too much emphasis on product/service

Taking advantage of

design and too little on process design

strengths/opportunities and

B. failing to take into account customer wants and

recognizing competitive threats

needs

would enable good

C. putting too much emphasis on short-term

performance.

financial performance D. taking advantage of strengths/opportunities, and recognizing competitive threats E. failing to monitor the external environment The manager of a carpet store is trying to

A. 2 Crews of two workers are

determine the best installation crew size. He has

most productive.

tried various crew sizes with the results shown below. Based on productivity, what crew size do you recommend? 2 - 716 4 - 1298 3 - 1017 3 - 1002 4 - 1278 2 - 702 A. 2 B. 3 C. 4 A. 2 Which of the following is not a key factor of

E. size of organization

competitiveness?

Competitiveness often has

A. price

nothing to do with organization

B. product differentiation

size.

C. flexibility D. after-sale service E. size of organization Gourmet Pretzels bakes soft pretzels on an

A. 50 percent. Divide the

assembly line. It currently bakes 800 pretzels

difference in productivity by the

each eight-hour shift. If the production is

original productivity.

increased to 1,200 pretzels each shift, then productivity will have increased by: A. 50 percent. B. 33 percent. C. 25 percent. D. 67 percent. The weekly output of a fabrication process is

B. 1.457 Calculate multifactor

shown below, together with data for labor and

productivity for each week,

material inputs. Standard selling price is $125 per

then average the two.

unit. Overhead is charged weekly at the rate of $1,500 plus .5 times direct labor cost. Assume a 40-hour week and an hourly wage of $16. Material cost is $10 per foot. What is the average multifactor productivity? A. 1.463 B. 1.457 C. 1.431 The Balanced Scorecard is a useful tool for

B. Customers; Financial;

helping managers translate their strategy into

Internal Business Processes;

action in the following areas:

Learning and Growth These are

A. Sustainability; Flexibility; Efficiency; Technology B. Customers; Financial; Internal Business Processes; Learning and Growth C. Customization; Standardization; Efficiency; Effectiveness

the four core areas addressed by the Balanced Scorecard.

D. The Environment; The Community; Suppliers; Other Stakeholders E. Strategy; Tactics; Productivity; Profitability A firm pursuing a strategy based on customization

A. variation Customization and

and variety will tend to structure and manage its

variety lead to variation that

supply chain to accommodate more _____________

must be accommodated.

than a firm pursuing a strategy based on low cost and high volume. A. variation B. streamlined flow C. quality D. capacity E. productivity Unique attributes of firms that give them a

D. core competencies. Core

competitive edge are called:

competencies can be translated

A. functional strategies.

into competitive advantage.

B. Balanced Scorecards. C. supply chains. D. core competencies. E. sustainable initiatives. Years ago in the overnight delivery business,

C. order winners; order

providing package tracking capability gave some

qualifiers What is an order

firms a competitive advantage. Now, all firms

qualifier and what is an order

must offer this capability simply to be in this line

winner changes over time.

of business. This is an example of ______________ becoming ____________ over time. A. tactical implications; strategic B. strategic implications; tactical C. order winners; order qualifiers D. profitability factors; productivity factors E. order qualifiers; order winners For firms competing in worldwide markets,

B. environmental analysis

conducting ______________ is more complex, since

Environmental analysis takes

what works in one country or region might not

into account the relevant

work in another.

factors in the environment;

A. productivity analysis

there are more of these if there

B. environmental analysis

are more markets to consider.

C. strategy implementation D. sustainability analysis E. growth forecasting Increasing the service offered to the customer

D. price. More extensive service

makes it more difficult to compete on the basis of:

can be more costly, and more

A. order qualifiers.

costly outputs make price-

B. customization.

based strategies more difficult.

C. quality. D. price. E. flexibility. __________ is generally used to facilitate an

E. Standardization

organization strategy that emphasizes low cost.

Standardization is a powerful

A. Speed to market

means of achieving low-cost

B. Flexibility

production.

C. Customization D. Sustainability E. Standardization Which of the following factors would tend to

C. more inexperienced workers

reduce productivity?

More inexperienced workers

A. improvements in workplace safety

tend to be less productive.

B. reductions in labor turnover C. more inexperienced workers D. reductions in the scrap rate E. less variety in the product mix Suppose a country's productivity last year was 84.

A. 88.2 Multiply 84 by 1.05 and

If this country's productivity growth rate of 5% is

then subtract 84 from this

to be maintained, this means that this year's

product

productivity will have to be _______. ... Skip to content

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275 words Check Price Looking for Expert Opinion? Let us have a look at your work and suggest how to improve it! Get a Consultant Which of the following is least likely to affect the

A. price Relative to the other

cost an organization incurs in producing its

choices, price is least likely to

products or services?

affect cost.

A. price B. productivity C. location D. quality E. inventory management Where a firm locates would typically not affect

D. strategy. Typically, strategy

that firm’s:

dictates where firms will locate,

A. costs.

rather than location dictating

B. convenience for customers.

strategy.

C. delivery times. D. strategy. E. transportation costs. Which of the following is not among the chief

B. emphasizing labor

reasons organizations fail?

productivity in labor-intensive

A. overemphasis on short-term financial

environments In labor-intensive

performance

environments, emphasizing

B. emphasizing labor productivity in labor-

labor productivity is a good

intensive environments

idea.

C. poor internal communications D. not investing in capital and human resources E. overemphasis on product (or service) design The key to successfully competing is

C. finding the best way to To

understanding what customers want and then

successfully compete, two basic

__________ satisfy those wants.

issues must be addressed:

A. training production workers to

What do the customers want?

B. finding suppliers who can

What is the best way to satisfy<...